Parimatch Highlights Tax and Market Challenges Hindering India’s Investment Growth Compared to China
CEO Insights reports that India aims to catch up with China in attracting investment, but numerous obstacles continue to block its progress. High tax rates, weak intellectual property protection, and over-regulation create a difficult environment for businesses. Prominent companies such as Tesla, Nokia, Parimatch, Foxconn Group, and Wistron Group have all experienced these challenges firsthand.
India’s tax system is complex and often hostile to foreign investors. While the global minimum corporate tax rate is 15% for multinationals with revenues exceeding €750 million, India imposes a 30% corporate tax on foreign companies—significantly higher than the global average of 23%. The country ranks poorly for tax code and system complexity according to the University of Paderborn and the World Bank. These burdens discourage foreign investment, including from companies like Parimatch.
Furthermore, India’s inadequate intellectual property protections allow rampant counterfeiting. Although Parimatch does not have an official office in India, counterfeiters exploit its brand, flooding the market with fake products. This undermines Parimatch’s efforts to invest, pay taxes, and contribute to the growth of India’s gaming industry. Without stronger IP enforcement, these challenges will persist.
Several major corporations have already exited India due to these difficulties. Foxconn Group and Wistron Group have withdrawn, and Tesla has postponed its expansion plans. Meanwhile, foreign direct investment is increasingly flowing to more welcoming markets such as Vietnam. The U.S. Ambassador to India, Eric Garcetti, recently noted concerns over India’s inability to attract the pace of FDI it desires, with investors favoring countries like Vietnam instead.
India remains a promising market with vast potential for both domestic and international companies. However, to unlock this potential, the government must implement reforms to create a more business-friendly environment. Parimatch stands ready to invest significantly in the Indian economy once these conditions improve.
